When shopping online, customers expect their orders to be packed and shipped quickly. In fact, convenience is one of the main reasons people prefer ecommerce over in-store shopping.

To meet these expectations, you need a solid ecommerce fulfillment strategy. Some businesses handle fulfillment in-house, while others partner with third-party providers who manage inventory, packaging, and delivery.

The right fulfillment solution depends on your business size and the products you sell. In this guide, we’ll explore the essentials of ecommerce fulfillment, the most common methods, and how to choose the best provider for your needs.

What Is Ecommerce Fulfillment?

Ecommerce fulfillment is the process of picking, packing, and shipping online orders to customers. It covers everything from managing inventory and packaging products to handling last-mile delivery logistics.

Many businesses rely on fulfillment companies to streamline this process. These providers operate fulfillment centers in strategic locations, often near major cities and transport hubs, to shorten delivery times and improve customer satisfaction.

How Do You Fulfill an Ecommerce Order?

The way you fulfill an ecommerce order often depends on the size of your business and your chosen business model. Smaller sellers usually handle order fulfillment themselves, while growing brands often turn to fulfillment companies or third-party logistics (3PL) providers to save time and cut costs.

Another common approach is dropshipping, where the entire fulfillment process — from storing inventory to shipping orders — is handled by the manufacturer or supplier.

Let’s break down these three ecommerce fulfillment methods in more detail.

Self-Fulfillment

Many new businesses and brands with unique shipping needs start with self-fulfillment. Using an ecommerce platform like Shopify makes it simple to manage and ship customer orders directly. This approach allows small businesses to track orders, handle returns and exchanges, and deliver a customer experience that rivals larger retailers.

In-house fulfillment often involves storing and managing your own inventory, providing customer support, and, as the business grows, hiring staff to help process orders efficiently.

Third-Party Fulfillment

As order volumes grow, many ecommerce businesses find it challenging to manage storage, packing, and shipping in-house. At this stage, they often turn to third-party fulfillment or warehousing solutions. These providers partner with merchants to process orders and can often secure lower shipping rates through bulk carrier negotiations.

Outsourcing fulfillment simplifies operations for online retailers. Instead of managing every step, businesses can send inventory to a fulfillment partner, who then takes care of packing, shipping, and delivery. The retailer’s main responsibility is ensuring the provider has enough stock to meet customer demand.

For Shopify users in the U.S., the Shopify Fulfillment Network app makes this process seamless by connecting stores with trusted partners like Flexport. This enables faster, more affordable nationwide delivery and better order management.

Dropshipping

Dropshipping is an ecommerce fulfillment model where merchants don’t handle inventory or shipping. Instead, when a customer places an order, the retailer forwards it to a manufacturer or distributor, who ships the product directly to the customer.

This approach makes it easy for online stores to get started without large upfront costs or warehouse space. However, it comes with trade-offs: less control over shipping speeds, limited influence on packaging and customer experience, and the potential for longer delivery times.

8 Best Ecommerce Fulfillment Solutions

Choosing the right fulfillment partner can feel overwhelming, especially with so many options available. To make the process easier, we’ve rounded up eight of the best ecommerce fulfillment solutions. Each one offers unique features to help you streamline operations, cut costs, and deliver a better customer experience.

1. Shopify Fulfillment Network (SFN)

The Shopify Fulfillment Network (SFN) connects your Shopify store to trusted logistics providers like Flexport, helping you deliver orders quickly and reliably without managing fulfillment in-house.

How SFN Works:

Install the free SFN app.
Set up your account with Flexport, Shopify’s launch partner.
Send your inventory to a single Flexport location, where it will be distributed across their fulfillment centers.
When a customer places an order, Flexport handles the packing, shipping, and delivery.

There’s no minimum inventory requirement, so you can easily test SFN with a small product line. You can also estimate your fulfillment and storage costs using the built-in calculator.

Key Benefits of SFN:

Manage everything directly from your Shopify admin
Fulfill orders for eligible products across multiple sales channels, including Amazon, Walmart, and eBay
Simplify inventory shipping by sending products to one central location
Sync Flexport data with your Shopify store at no extra cost

2. Flexport

For Shopify merchants not using SFN, Flexport is a powerful fulfillment and logistics solution. Flexport manages global supply chains from the factory floor to the customer’s doorstep, helping businesses sell worldwide, ship anywhere, and scale with ease.

With competitive pricing and flexible delivery options, Flexport ensures you only pay for the services your business truly needs.

Key Features of Flexport:

Fast two- and three-day delivery options
Fulfillment for ecommerce, direct-to-consumer (DTC), and B2B orders
Demand-based planning to position inventory closer to customers
International fulfillment with transparent pricing
Customs clearance and shipping insurance support
Supply chain financing to improve cash flow

3. ShipNetwork

ShipNetwork is a U.S.-based fulfillment provider known for its commitment to speed. With more than 10 fulfillment centers nationwide, ShipNetwork guarantees next-day shipping on all orders, ensuring customers receive their purchases within two days.

Businesses can request a custom quote to learn more about ShipNetwork’s pricing and tailored solutions.

Key Features of ShipNetwork:

Order accuracy guarantee for reliable fulfillment
Subscription box fulfillment for DTC brands with recurring shipments
Return management services to simplify product exchanges and customer support

4. Fulfillment by Amazon (FBA)

For merchants who primarily sell on Amazon, Fulfillment by Amazon (FBA) is one of the most convenient order fulfillment options. With FBA, Amazon takes care of storage, packing, shipping, and customer service—making it especially attractive to new sellers.

When you send products to Amazon’s fulfillment centers, your listings become eligible for Amazon Prime two-day shipping, giving customers a faster, more reliable delivery experience. FBA also provides perks like free shipping to fulfillment centers, liquidation services, and streamlined returns.

Keep in mind that Amazon’s fulfillment fees are based on each product’s size and weight.

Key Features of FBA:

24/7 customer support from Amazon’s fulfillment team
Inventory performance dashboard to track and optimize stock levels
Returns management handled directly by Amazon

5. ShipBob

ShipBob is a widely used fulfillment solution that integrates seamlessly with Shopify and other ecommerce platforms. Serving both DTC and B2B businesses worldwide, ShipBob helps brands streamline logistics while maintaining flexibility and scalability.

Getting started is simple: connect your store to ShipBob’s software, import your product catalog, and send your inventory to their fulfillment centers. From there, ShipBob manages packing, shipping, and delivery. Pricing is available through custom quotes based on your needs.

Key Features of ShipBob:

Omni-fulfillment across major sales channels, including Amazon, eBay, and Shopify
Customizable shipping materials for stronger branding
Wholesale and dropshipping order fulfillment services

6. Red Stag Fulfillment

Red Stag Fulfillment is a strong choice for businesses exploring third-party ecommerce fulfillment, thanks to its 30-day free trial. Known for reliability, Red Stag guarantees 100% order accuracy and offers same-day fulfillment, helping online stores ship products quickly and keep customers happy.

Key Features of Red Stag Fulfillment:

Seamless Shopify shopping cart integration
Advanced warehouse and inventory monitoring for better stock control

7. ShipHero

ShipHero helps ecommerce brands deliver quickly by matching customer orders with the nearest warehouse. With nine fulfillment centers across the U.S. and Canada, ShipHero distributes products based on customer demand, ensuring faster and more efficient shipping.

The platform integrates directly with Shopify, making it easy to sync inventory and streamline fulfillment. Pricing depends on package size and shipping method, ranging from $5.60 to $87.78 per product, with storage starting at $0.65 per cubic foot.

Key Features of ShipHero:

Inventory management system with smart suggestions for slow-moving products
In-package snapshots for quality assurance
PostHero integration to track shipments from warehouse to delivery

8. ShipMonk

ShipMonk stands out among third-party fulfillment providers thanks to its international reach. Unlike many competitors, ShipMonk operates warehouses in Europe (UK and Czechia), along with facilities in Canada and Mexico—making it a strong choice for global ecommerce brands.

With seamless Shopify app integration, merchants can easily connect ShipMonk to their online stores and automate the fulfillment process. To help estimate costs, ShipMonk also offers a pricing calculator on its website.

Key Features of ShipMonk:

100+ integrations with ecommerce, retail, and business platforms
Transparent billing with detailed reporting
Fulfillment solutions for ecommerce, retail, subscription boxes, crowdfunding, and more

How to Choose an Ecommerce Fulfillment Provider

Selecting the right fulfillment partner can make a big difference in your business’s growth and customer satisfaction. The best provider will align with your sales volume, product type, and long-term goals while helping you save time and reduce costs.

Here’s what to consider when evaluating ecommerce fulfillment providers:

Similar Industry Experience

Not all fulfillment companies operate the same way. Many tailor their services to specific niches or industries, offering specialized packaging, storage, or shipping solutions. If your business has unique requirements—whether it’s fragile items, subscription boxes, or oversized products—it’s important to choose a fulfillment provider with proven experience handling similar products and customer expectations.

Ecommerce Specialization

When possible, choose a logistics company that specializes in ecommerce fulfillment. Providers with prior experience working with online businesses can offer more than just shipping—they can provide strategic guidance as your store grows. This often includes support with import tariffs, product classification, and international shipping regulations.

Before signing an agreement, have a detailed conversation with your potential fulfillment partner. Ask specific questions about their ecommerce experience, and don’t hesitate to request client references to ensure they’re a good fit for your business.

Look Beyond Price

Shipping costs are one of the biggest challenges in ecommerce, and it’s easy to be tempted by the lowest price. But when it comes to fulfillment, the cheapest option isn’t always the best fit.

A poor fulfillment experience—late deliveries, inaccurate orders, or damaged packages—can lead to unhappy customers, negative reviews, and lost sales. In many cases, those losses outweigh any savings on shipping overheads.

That’s why pricing should be a factor in your decision, but not the deciding one. Look for a fulfillment partner that balances cost with reliability, speed, and customer satisfaction.

Other Factors to Consider When Choosing an Ecommerce Fulfillment Provider

Beyond cost and industry experience, there are several other factors that can influence the success of your fulfillment strategy:

Data and Analytics: Real-time tracking and reporting tools help you make smarter decisions about inventory allocation, restocking, and sales forecasting. Look for providers that give you clear visibility into your operations.
Fulfillment Center Locations: The closer your stock is to your customers, the faster and cheaper shipping becomes. Some providers can even support same-day or two-day delivery by leveraging multiple warehouses.
Inventory Shrinkage Allowance: Shrinkage refers to lost, stolen, or damaged products. Some 3PLs charge fees for this, while others offer zero-shrinkage policies. Understanding this upfront can prevent hidden costs.

Ecommerce Fulfillment Stages

While every fulfillment company has its own processes, they all share the same goal: preparing and shipping orders as efficiently as possible. Many fulfillment centers also act as warehouses, giving you space to store more products and scale your operations.

From inventory storage to packaging and delivery, the ecommerce fulfillment process involves several moving parts. Here are the core stages every business should understand:

1. Receiving Orders and Inventory Storage

Once a customer places an order, the fulfillment center needs fast access to your products. To make this possible, items are stored in well-organized warehouses designed for efficiency.

Each product is assigned a stock keeping unit (SKU) and placed in a specific storage location, making it easy for staff or automated systems to find. Fulfillment centers also monitor inventory levels in real time and work with merchants to ensure products stay in stock—preventing delays and backorders.

2. Packing and Shipping

Once an order is submitted, fulfillment centers pick the items, pack them securely, and prepare them for shipping. Many providers have bulk agreements with shipping carriers, allowing them to lower delivery costs and pass savings on to merchants.

After dispatch, the fulfillment center shares shipping confirmations and tracking details—either with the merchant or directly with the customer—ensuring full visibility throughout the delivery process.

Since delivery speed is one of the most important factors for online shoppers, many providers operate multiple fulfillment centers. By pre-distributing inventory across locations, they can reduce transit times and offer faster delivery options.

For fast-growing businesses, it’s best to partner with a provider that gives you a centralized dashboard and smart inventory allocation across warehouses, helping you optimize costs while maintaining speed.

3. Returns Management

In 2023, U.S. online shoppers returned nearly $248 billion worth of products. With customers increasingly expecting hassle-free return policies, many fulfillment providers now handle returns and refunds on behalf of merchants.

Typically, returns are sent directly to the fulfillment center, where items are inspected for damage or defects. Some providers will automatically replace the product or issue a refund, allowing retailers to stay hands-off. If the returned product is in sellable condition, it’s restocked and made available for future orders, helping minimize waste and lost revenue.

The Benefits of Using Third-Party Logistics

Partnering with a third-party logistics (3PL) provider offers more than just time and cost savings. These fulfillment experts bring specialized knowledge, technology, and infrastructure that can help your ecommerce business scale efficiently. From faster shipping and accurate order processing to smarter inventory management, a 3PL allows you to focus on growing your brand while they handle the operational details.

Increased Warehouse Flexibility

Many third-party logistics providers offer flexible warehouse solutions, allowing businesses to scale storage space up or down based on demand. Unlike fixed contracts, this approach adapts to seasonal sales spikes or slower periods, helping you manage costs while ensuring inventory is always available when needed.

Expert Advice

Every ecommerce business encounters supply chain challenges at some point. With a 3PL provider, you gain access to a team of logistics experts and support staff who manage inventory, shipping, and other operational tasks. Their guidance and experience give your business a level of agility and problem-solving capability that’s difficult to achieve on your own.

Time Savings

Most entrepreneurs don’t start a business to spend hours packing boxes. By outsourcing fulfillment to a 3PL provider, you free up valuable time to focus on growing your brand, marketing, and improving the customer experience. Letting experts handle logistics ensures your energy is spent where it has the greatest impact on your bottom line.

When Is the Right Time to Switch to Outsourced Fulfillment?

Many ecommerce businesses start by fulfilling orders in-house and turn to a third-party logistics (3PL) provider as they grow. For bootstrapped businesses, deciding to partner with an external fulfillment company can feel daunting.

The key thing to remember: you don’t need to reach a specific size to benefit from outsourced fulfillment. If you’re experiencing any of the situations below, it might be time to start exploring logistics partners.

Cyclical or Uneven Sales

If your order volume fluctuates throughout the year, maintaining your own warehouse and staff can be costly and inefficient. A fulfillment partner can scale with your business, adjusting resources to meet changing demand.

Unexpected spikes in sales can also strain in-house operations and risk missed delivery promises. By outsourcing fulfillment, experts can manage peak periods seamlessly, ensuring a consistent, reliable experience for your customers.

You’re Too Busy

If fulfilling orders is taking up most of your time, it may be time to outsource your fulfillment. As a business owner, your focus should be on growing your brand—marketing, expanding sales channels, sourcing new products, and improving your offerings—rather than spending hours packing and shipping orders.

Lack of Infrastructure

Without the right infrastructure, logistical challenges—like rising shipping costs and slower delivery times—can limit your ability to expand into new markets. By partnering with a global fulfillment provider, you can leverage their network of warehouses and distribution centers to meet customer demand efficiently, no matter where your buyers are located.

Ecommerce Fulfillment Challenges

There’s no one-size-fits-all solution in ecommerce fulfillment. While third-party logistics (3PL) providers offer many advantages, there are situations where outsourcing may not be the right fit—regardless of your business size.

Here are some types of businesses that might find a 3PL solution less suitable:

Businesses with Limited Cash Flow

If your budget is tight, outsourcing fulfillment may not be feasible. In such cases, bootstrapping growth and managing order fulfillment in-house can be the most practical option. For example, in Amazon’s early days, employees spent evenings hand-picking and packing customer book orders to keep the business running.

Highly Specialized Businesses

Some fulfillment centers aren’t equipped to handle customizable products, fragile items, or sensitive materials. Businesses that rely on these specialized products may find in-house fulfillment or niche providers better suited to meet their unique handling requirements.

Businesses with Limited Daily Order Volume

If your store is only processing a handful of orders each day, outsourcing fulfillment may be premature. At this stage, handling orders in-house—either by yourself or with a small team—is typically manageable.

Once your daily shipments reach five to ten orders, it may be the right time to start exploring third-party logistics (3PL) options to streamline operations and prepare for growth.

Moving Forward with Your Ecommerce Fulfillment Partner

Outsourcing ecommerce order fulfillment is ideal for businesses with ambitious growth goals or fluctuating sales volumes. If you lack the time or resources to manage packing and shipping in-house, a professional third-party provider can streamline your operations, optimize fulfillment processes, and deliver a premium customer experience. Partnering with the right fulfillment company allows you to focus on growing your business while ensuring your customers receive fast, reliable service.

Ecommerce Fulfillment FAQ

What is an order fulfillment process?
The order fulfillment process includes all the steps a business takes to receive, process, and deliver customer orders. This covers receiving products, storing them in warehouses, picking and packing items, shipping, and managing logistics until the order reaches the customer.

What is the best fulfillment solution?
For ecommerce merchants, the Shopify Fulfillment Network (SFN)—managed through Flexport—is an excellent option. With strategically located U.S. distribution centers, Flexport allows sellers to offer fast, reliable shipping. Transparent pricing includes inventory management, delivery, and other fulfillment services.

How do I fulfill an online order?

Receive the customer order and process it.
Pick and package the items.
Label and ship the order.
Track the package until it reaches the customer.

How much does ecommerce fulfillment cost?
Fulfillment providers typically charge per hour, per unit, or per pallet. Costs usually include receiving orders, picking and packing, shipping, kitting or bundling, returns handling, and storage. Some providers may also charge recurring inventory storage fees.

What is direct order fulfillment?
Direct fulfillment occurs when a store or manufacturer ships products straight to customers rather than sending bulk shipments to retailers or distributors.

The Ultimate Ecommerce Fulfillment Guide: How to Master Order Fulfillment